In a few words Brazil is the largest country in South America. It has the largest population, the largest economy, plenty of natural resources, a warm welcoming multi cultural population with no wars, earthquakes, or natural disasters, with a solid democracy, and is the kingdom for football (soccer). With its outstanding nature and diversity, Brazil is a spectacular place to leave and to do business.

Brazil is also the 9th largest economy in the world with the potential to surpass other Countries in the next few years.

It is considered a “summer” country, with only a week of winter per year in 2/3 of the country. Only the southern regions have a cooler winter and snow once in a while.

However, Brazil also has some problems. There is a big income disparity, as a result of a bad taxing system and corruption in the government. About 20% of the population lives below the line of poverty.

Brazil’s most important exported products are airplanes supplied to regional airline companies around the world. It is one of the biggest manufacturers in the world. The top second largest product is motor vehicles, or cars. Most people think that coffee, iron, soybean, and other raw materials were the leading commodities to be exported and in fact Brazil still exports them in large quantities but the manufactured products have surpassed them in revenues in the last decade.

Franchising in Brazil
Like most countries franchising in Brazil started in a very informal way in the sixties, with language schools. Beauty products started in the seventies. It was in only in the late eighties that the Brazilian Franchising Association – ABF was founded.

Today franchising plays an important role in the business environment registering annual sales of about U$ 28 billion. There are about 65.000 franchise units operating in the Country. The number of franchisors is increasing every year, and is nowadays over 1300 companies.

ABF Franchising EXPO
With the goal of spreading the concept of operating networks in the Country, ABF promotes every year a franchising expo, already in its 18th edition and is considered to be the largest and best exhibition of its kind in Latin America.

The 2009 edition of the franchising expo will be on June starting on the 17th thru the 20th and is expected to attract over 30,000 visitors. This number has been steadily increasing in the past few years and now also counts with international visitors.

Which niches are still not very well developed in Brazil?

• 1. Business Oriented Hotels
  Brazil has a poor hotel network, mainly in smaller cities. New international brands are investing large amounts of money in this industry. Companies such as Choice Hotels, Carlson Group, Group Accord and others already have development plans for the next 10 years, but there still is a tremendous gap to be filled and opportunity for more companies to enter this rewarding market.
  
  
• 2. Vehicle Maintenance
  Most of the Brazilians still bring their cars (more than 25 million) to small garages or to the big car dealers. The small garage has no credibility and the big car dealers charge high prices. It is also important to note that the fleet is over 5 years old and higher in smaller cities. There are virtually very few local companies and networks operating in that market.
  
  
• 3. Casual Dining
  Brazil has a huge number of very good restaurants, it is quickly becoming a must for most gourmets and several articles have been published in major newspapers about the quality of the food. Unfortunately they are expensive and there are only a few regional or national chains. The American casual dining style fits very well in the Brazilian way of life.
  Contrary to the fast-food industry, the casual dining restaurant is easier to adapt the local culture, and is also much easier to be economically successful. A single unit can be profitable, while fast-food restaurants, in most cases need multiple units to break-even, offering a higher risk to the investor.
  
  It also is worthy to note that Brazil counts with a world-class quality and a large variety for raw products. One should keep in mind that it could become a reliable and economical source of supply for most casual dining restaurant chains.
  
  
• 4. Fast Food Industry
  There are several international and national fast food chains currently operating. These systems were quickly and easily adopted by Brazilians.
  However Fast Food chains are more difficult to implement. The franchisor needs to find a well-established partner that has a solid experience.
  There have been a few cases of international franchises that were not successful in Brazil, most of them in the fast food area. Each company had a different history, but there are some mistakes that have been made which resulted in their failure. Some of these errors were mainly related to their lack of adapting to the country’s local customs and culture and choosing the wrong partner.
  
  
• 5.Famous Brands
  Like most developed countries, Brazilians love to buy and use famous brands of clothes, glasses, jewelry, etc… Cable television, movies, music and other medias have created a large demand for famous brands particularly for the growing middle and upper classes.
  
  
• 6. Business with Updated Technology
  Any business that brings innovative technologies in product or services can count with an expressive competitive edge against local competitors and will be very well received by the marketplace. Novelties are well received by Brazilians and with proper marketing they can achieve higher success than their country of origin.
  Internet also plays a major role in the day-to-day lifestyle and products and services in that field find high receptivity in most cases.
  One cannot ignore the health and beauty industry as Brazilians love to take care of themselves. Most major brands are readily available in the market but there is plenty of room for more. After all who has never heard of the beauty of the Brazilian woman?
  
  
• 7. Other Niches
  Most franchise concepts in all industries can look at Brazil as an attractive market. The diversity and large population offer an opportunity for virtually any type of product or service.

Advertise Your Brand
Like most marketplaces Brazil counts with many opportunities to advertise your concept many very cost effective.

• Tradeshows: There are several regional events in Brazil but as mentioned earlier The ABF Franchise Expo is the largest expo of its kind in Brazil and in Latin America. Many countries such as the US, Spain, Portugal have organized pavilions and do so on a regular basis. Tradeshows in addition to the opportunity of meeting face-to-face with qualified prospects give you the opportunity to have a better feel and understanding of the market. Franchise concepts with a serious interest in entering the Brazilian market should consider this option in their marketing approach.

• Internet: Most if not all of the middle and upper Brazilian class have easy access to the internet. In fact they prefer it over most other medias as in addition to avoiding hectic traffic jams encountered in most major cities, it gives them the opportunity to research what they are looking for in the privacy of their own home on their own terms. There are many successful websites such as the international network www.BeTheBoss.com.br that has delivered even master franchise leads to some foreign brands as well as the ABF portal. The internet is also an economical way of gathering crucial data and preparing for a tradeshow.

• Consular services: Most countries offer services via their Commercial Services information and assistance that will greatly reduce the learning curve when entering an imposing market such as Brazil. Some may even be in a position to offer one on one meetings with potential candidates such as the US Commercial Service.

• Magazines and Television: There are many options to reach the general public with your particular concept. Some of the most successful advertising agencies are in Brazil and for the companies who can afford it can be a valid alternative.

• Consultants: There are many options available as well. Most if not all of the serious consultants in Brazil such as Global Franchise will work based on a retainer fee but will in exchange give you a presence at the tradeshows and the internet as part of their services. One of the major advantages in hiring a consultant is the assistance they can offer is in preparing and guiding foreign companies to avoid ll the legal pitfalls they may encounter.